1. Explain the effect changes in price have on the quantity of a good or service demanded. Include the economic term for this phenomenon. Explain the substitution effect or the income effect in the context of the effect of changes in price on quantity demanded. (3pts)

2. List at least two non-price determinants that create changes in supply or demand. Then, describe a brief scenario that gives an example of a non-price determinant that shifts the entire supply or demand curve. Indicate which direction the curve shifts. (4pts)